Gold Prices Eye $3,000 Amid U.S. Tariffs and Inflation Concerns
Gold prices remained firm on Tuesday, trading around $2,816.62 after peaking at $2,821.45.
The metal’s resilience is driven by inflation concerns and U.S. tariff policies, which continue to bolster its safe-haven appeal. President Donald Trump’s recent suspension of tariffs on Mexico and Canada has offered temporary relief, but looming levies on Chinese goods are keeping markets on edge. Analysts see these policies as potentially inflationary, pushing investors toward gold as a hedge.
“In the current dynamic environment, where policy shifts create volatility, gold prices are likely to stay supported,” noted IG Market Strategist Yeap Jun Rong. The near-term price target is projected at $2,874, with the psychological barrier of $3,000 within reach.
Key Technical Levels to Watch
Gold is trading within an ascending channel, reflecting strong bullish momentum. Immediate resistance stands at $2,830.18, with further hurdles at $2,843.98 and $2,856.99. A breakout above these levels could propel prices toward the $3,000 mark.
Pivot Point: $2,809.89
Resistance Levels: $2,830.18, $2,843.98, $2,856.99
Support Levels: $2,796.55, $2,786.36, $2,772.52
The 50-period EMA at $2,791.49 provides strong dynamic support. The RSI suggests mild consolidation, hinting at potential profit-taking but with underlying bullish sentiment intact.
Global Factors Influencing Gold Prices
Adding to the bullish momentum, global bullion banks are channeling gold into the U.S. from Asian trading hubs like Dubai and Hong Kong to capitalize on high premiums in U.S. gold futures. This increased demand reflects confidence in gold’s upward trajectory.
Upcoming U.S. jobs data could significantly impact gold’s short-term direction. Investors are watching the job openings report, ADP employment data, and Friday’s non-farm payrolls. Meanwhile, markets in China, the world’s top gold consumer, will resume trading post-Lunar New Year, potentially adding fresh volatility.
In conclusion, gold remains well-supported amid global economic uncertainty. While short-term pullbacks are possible, the long-term outlook favors continued gains, with $3,000 firmly in sight if bullish momentum persists.
